Heterodox
As short rates rise the tendency for novice bond investors is to believe that the short end of the curve suddenly makes it irrational to hold any long-term bonds. While it’s true that the risk/reward of short-term bonds improves in this environment it doesn’t mean that long bonds serve no purpose in diversifying a portfolio. Here’s a very good video from Cathy Jones, Schwab’s Chief Fixed Income Strategist outlining three reasons why you shouldn’t abandon long-term bonds as short rates...
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